Investment Scams

Introduction

Investment scams continue to evolve, and in 2025, fraudsters are using increasingly sophisticated tactics to deceive individuals into handing over their money and/or cryptocurrency. Scammers frequently impersonate financial advisors or brokers, pressuring victims into making quick decisions, and demand cryptocurrency payments upfront. Many of these scams originate from international or offshore trading platforms, making them even riskier due to lack of regulation and legal recourse. This article will help you identify these scams and protect yourself from falling victim.

TLDR: Scammers impersonate financial advisors or brokers, promising high returns and asking for cryptocurrency deposits upfront to "fund" offshore trading platforms. They use pressure tactics to rush decisions. Always verify investment opportunities, avoid unsolicited offers, and never send funds without proper due diligence. 

Common Investment Scams to Watch Out For 

1. Impersonation of Financial Advisors or Brokers

Scammers often pose as legitimate financial advisors, brokers, or representatives of well-known banks, investment firms, or cryptocurrency exchanges. They may contact you via WhatsApp, Facebook, Telegram, or even phone calls, claiming to offer exclusive investment opportunities with high returns.

Red Flags:

• Unsolicited messages from someone claiming to be a financial advisor or broker.

• No verifiable credentials or fake company profiles.

• Requests to move conversations to private channels like WhatsApp or Telegram.

• Claims that they have “inside information” on profitable investments.

• Usage of Bahasa Malaysia, English, or Mandarin to appear more convincing. (MY Specific)
  
  

2. Fake Trading Platforms Requiring Upfront Cryptocurrency Payments

Fraudulent trading platforms are becoming increasingly common. These platforms are often operated from offshore or international locations, making it nearly impossible for Malaysian authorities to intervene. Scammers will convince victims to deposit cryptocurrency directly to their wallet instead of using a legitimate exchange’s or platform’s deposit methods. In reality, no real trading is taking place, and victims lose their funds.

Red Flags:

• The platform is registered in offshore jurisdictions with no clear regulatory oversight.

• No deposits allowed via traditional payment methods card or bank transfers to regulated exchanges/platforms

• No transparency about the company behind the platform.

• No ability to withdraw funds once deposited.

• A website that lacks proper security (e.g., no HTTPS, no verifiable company details).

• Fake endorsements from celebrities or influencers.
  
  

3. Urgent Time Pressure to Act Quickly

Scammers create a sense of urgency to prevent victims from thinking critically or verifying information. They may claim that an investment opportunity is time-sensitive and that you must act immediately to avoid missing out on potential profits.

Red Flags:

• Statements like "limited-time offer," "once-in-a-lifetime opportunity," or "act now before it’s too late."

• Pressure to send cryptocurrency immediately.

• Discouraging you from consulting with family, friends, or financial professionals.

• Fake claims that Bank Negara Malaysia or the Securities Commission Malaysia approves the investment. (MY Specific)
  
  

How to Protect Yourself

1. Verify the Advisor or Broker’s Identity

• Check if they are registered with Securities Commission Malaysia (SC) or Bank Negara Malaysia (BNM)  or relevant regulatory body 

• Look up their company’s official website and compare contact details.

• Contact the company directly through official channels to verify legitimacy. 

• Check for reviews online about the company and/or service provided (eg TrustPilot)
  
  

2. Research the Trading Platform

• Be cautious of trading platforms based in offshore jurisdictions with little or no oversight.

• Use well-known and regulated exchanges/platforms.

• Search for reviews and complaints about the platform on local forums like Lowyat.NET or SC’s Investor Alert List. (MY Specific)

• Check if the platform has proper licensing from Securities Commission Malaysia. (MY Specific)
  
  

3. Never Send Cryptocurrency Upfront to Unknown Parties

• Legitimate trading platforms do not require you to send funds to an individual’s wallet.

• Always deposit through the official deposit channels of trusted exchanges/platforms.
  
  

4. Take Your Time and Avoid Pressure Tactics

• A legitimate investment opportunity will not require rushed decisions.

• If someone is pressuring you, step back and reassess before making any payments.
  
  

What to Do If You Suspect a Scam

• Stop all communication with the suspected scammer.

• Report the scam to Securities Commission Malaysia (SC) or Bank Negara Malaysia (BNM). (MY Specific)

• Warn others by sharing your experience on scam reporting websites and forums 

• If you have already sent funds, contact your exchange’s support team to see if any recovery options exist.
  
  

Conclusion

Being aware of these common investment scams can help you protect yourself and your assets. Many fraudulent investment platforms operate from offshore jurisdictions, making them even riskier. Always verify the legitimacy of financial advisors, trading platforms, and investment opportunities before committing any funds. If something feels off, trust your instincts and conduct thorough research.

Stay informed and stay safe!

Disclaimer

Hata is committed to protecting our customers from fraudulent activities. We’ll never contact you outside our app or platform to ask for your account details, ask you for payment, or push you to make transactions. If someone does this claiming to be us, it’s a scam - don’t trust it and report it right away. All our real messages come through official communication channels only. 

We’re here to help, but we cannot promise to recover lost funds. You are responsible for keeping your information safe and conducting your due diligence on the people that you deal with. We are not liable for losses from scams or unauthorised actions conducted outside our platform. 

If something seems fishy or out of place, stop talking to them, don’t pay them anything, and let us know through our app. You can also report it to authorities like the Securities Commission Malaysia or local law enforcement.